The proposed Shree Jagannath International Airport (SJIA) in Puri has moved closer to implementation after the Airports Authority of India (AAI) agreed to develop the greenfield facility following environmental and Coastal Regulation Zone (CRZ) clearances. The Puri airport project, earlier estimated at Rs 5,631 crore, is planned across 1,164.72 acres in Sipasarubali, Odisha’s Puri district, with the first phase designed to handle 4.6 million passengers annually. The proposed Jagannath Puri airport is also expected to strengthen access to the temple city, subject to the project’s completion and eventual flight operations.
The development puts Sipasarubali, Sandhapur and the wider Brahmagiri area in focus for potential real estate activity around the proposed Puri airport. Better air connectivity could support demand for hospitality, commercial establishments and residential accommodation serving visitors and airport-related businesses.
Sipasarubali and Sandhapur emerge as the immediate property areas to watch
Sipasarubali is the most directly exposed locality because the proposed airport will be developed within the same area. The project footprint includes 153.37 acres of private land in Sipasarubali and 68.11 acres in Sandhapur, along with government and revenue forest land.
The new Pune airport site is close to the Bay of Bengal and is expected to connect with the Puri-Satapata-Bhubaneswar corridor through National Highway 316 (NH 316). This road connection will be important in determining how easily passengers, employees, and supporting businesses can access the facility. For travelers searching for an airport near Jagannath Puri, the proposed facility could eventually provide a closer aviation gateway, depending on its final operational arrangements.
For real estate, the immediate opportunity to monitor is demand for hospitality establishments, serviced accommodation, restaurants and commercial premises. Residential demand could also develop if Puri airport operations and related businesses generate employment in the surrounding area.
Brahmagiri and Puri’s outskirts could attract supporting development
Beyond the airport’s land boundary, the wider Brahmagiri area and selected parts of Puri’s outskirts are worth monitoring for tourism-linked development and supporting services.
The Puri airport first phase is designed for 4.6 million passengers annually, with a runway and terminal infrastructure planned to accommodate a broad range of aircraft. If passenger services and tourism activity expand as intended, businesses serving visitors could require additional accommodation, retail space, transport facilities and other commercial infrastructure.
Puri city is the established demand center in this relationship. Its religious tourism economy and coastal attractions provide an existing base for hotels, holiday accommodation and visitor-oriented businesses. The proposed Jagannath Puri airport could improve access to this market, although the eventual benefit will depend on airline participation, routes and passenger volumes.
Second-home buyers and senior living could widen Puri’s real estate appeal
Puri’s combination of religious significance and a coastal setting could also make the wider region worth considering for second-home buyers and people exploring retirement-oriented housing. The proposed Puri airport may improve access for owners who live elsewhere and visit periodically. However, the extent of this benefit will depend on the routes introduced and the project’s eventual operational timeline.
The potential senior living aligns with a wider trend identified in Square Yards Research’s Senior Living Report 2026. The report projects that India’s population aged 60 and above will increase from around 143 million in 2021 to approximately 347 million by 2050. It also identifies spiritual destinations and coastal second-home belts as possible settings for wellness-focused retirement living.
Bhubaneswar property prices provide a regional benchmark
Square Yards data puts Bhubaneswar’s average asking price at Rs 7,000 per sq ft as of June 2026, representing a 3.62% quarterly increase. The city’s average apartment asking price is also Rs 7,000 psf, while villa prices average Rs 4,400 psf, according to the platform’s property-rate data.
Within Bhubaneswar, Square Yards lists average asking prices of Rs 9,800 psf in Raghunathpur, Rs 9,000 in Chandrasekharpur and Rs 6,900 in Khandagiri. These figures illustrate the variation across established residential markets within the regional capital.
Bhubaneswar’s prices should be treated as a regional benchmark, not a proxy for Sipasarubali or Puri. The two markets have different demand drivers: Bhubaneswar has a broader residential and employment base, while Puri’s property economy is more closely tied to pilgrimage, coastal tourism, and hospitality. Anyone comparing the nearest airport Jagannath Puri options with property locations should also distinguish existing airport access from the proposed facility, which is not yet operational.
Biju Patnaik Airport adds another dimension to regional connectivity
The proposed Puri airport is intended to address the need for additional aviation capacity while improving access to the temple city. The proposed greenfield facility is around 50 km from Biju Patnaik International Airport by air and approximately 67 km by road, according to the supplied report.
The two facilities could serve complementary roles if the Puri project progresses. Bhubaneswar’s airport provides access to the state capital and the wider region, while the proposed Puri facility could offer a more direct entry point for visitors heading to the Jagannath Temple and nearby coastal destinations. This could also change how travelers assess the airport near the Jagannath Puri temple, once the new facility becomes operational.
Puri’s potential airport-related demand is likely to be most closely tied to tourism, hospitality, and supporting commercial services. Bhubaneswar, meanwhile, provides a broader residential market against which regional pricing can be compared. Until the Puri airport is operational and flight routes are confirmed, the scale of any connectivity benefit remains uncertain.
AAI’s DPR and remaining approvals will determine the next phase
The Odisha government had earlier pursued the airport under a public-private partnership model, with Fairfax, Adani Airports and GMR expressing interest during the 2024 tender process. AAI has now agreed to take up development and prepare the detailed project report (DPR) after completing the remaining statutory formalities.
The DPR will establish the updated investment requirement, technical specifications, traffic projections, and phased development plan. The Ministry of Civil Aviation must approve it before the project can proceed to execution. The revenue-sharing arrangement between AAI and the Odisha government also remains under discussion.
The earlier Rs 5,631-crore estimate may therefore change under the revised development approach. Meanwhile, the government has handed over land, but private land acquisition remains ongoing. For anyone tracking the Puri airport project as a potential real estate catalyst, the DPR, land acquisition, construction progress, and eventual flight operations will be more meaningful milestones than the announcement alone.
